Trip insurance & safety net: Get hotel quarantine cover

Indians are travelling again after a two-year lull. Alongside rising demand for overseas tickets, online insurance portals have seen demand for travel insurance also shoot up in recent months.

Amit Chhabra, head-health and travel insurance, PolicyBazaar, says, “We have seen a 40 per cent increase in the sale of travel insurance between March and April. A similar jump happened between January and March this year.”

One regulatory development has also given fresh impetus to the sale of travel insurance.

Naval Goel, chief executive officer and founder of PolicyX.com, says, “The Insurance Regulatory and Development Authority of India has made it mandatory for these policies to cover Covid. That, too, has contributed to our sales rising above pre-pandemic levels.”

Even as travel restrictions are being lifted, the recent surge in Covid-19 cases in some countries is a cause for worry. This looming threat has made it all the more important that you choose your travel insurance policy carefully.

What’s covered

Your travel insurance policy will cover Covid-19 and other ailments. “Your insurer will pay for your treatment should you test positive in your destination country. Travel insurance will also cover hospitalisation due to other ailments and any emergency medical treatment,” says Chhabra.

Most policies also cover trip cancellation, missed connecting flights, baggage loss, passport theft, expenses arising due to curtailment of trip because of an ailment, and emergency evacuation due to medical causes.

 

Key exclusions

Read the fine print before buying a travel insurance policy.

“These policies exclude ‘foreseeable’ events. Many travel insurers have declared Covid-19 to be a foreseeable event. Had you purchased travel insurance after the insurer made this declaration, trip cancellation due to Covid-19 might not have been covered,” says Goel.

While hospitalisation will be covered, the insurer may not pay your bills if you are quarantined in a hotel. “If you were to test positive after you landed and had to quarantine in a hotel to abide by the destination country’s isolation rules, check whether your insurer will pay for your hotel stay,” says Chhabra.

Another scenario is that you may have to stay at a relative, friend or acquaintance’s residence while getting treated. Check whether the insurer will pay for the cost of your treatment.

Whether coverage is available for each of these scenarios varies from policy to policy.

Ensure you buy a policy that covers the cost of hotel accommodation up to the defined medical sum insured.

Insurance with global coverage

Nowadays many people buy health insurance policies that offer global coverage. “Such a policy provides assurance of health care support to people travelling abroad on work, for education, leisure, or critical care,” says Goel.

These plans cover hospitalisation charges, transportation during illness, surgery, and outpatient treatment.

In case you have a travel and health policy with global coverage, and you get Covid in the destination country, which should you use? “You can contact either insurer and both will provide coverage. Opt for the one that has a network hospital in the vicinity. If one offers cashback and the other reimbursement, select the former,” says Chhabra.

Make sure the sum insured on your travel policy is adequate.  

M Barve, founder, MB Wealth Financial Services, says, “The cost of medical treatment can be exorbitant, especially in developed countries. Whatever sum insured you have will get exhausted very quickly. Buy sum insured of at least $100,000.”

Key points to note

Go through the policy wording carefully to understand its nuances. Fill out the policy form carefully and make correct disclosures. If you have a pre-existing disease, declare it at the time of purchase. If you fail to do so, you run the risk of your claim being rejected in a foreign land.